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Published on Thursday, October 09, 2008
By LA Daily News Staff Writer
Shares of General Motors Corp. lost nearly one-third of their value Thursday - plunging to their lowest level since July 1950 - after Standard and Poor's said the automaker's credit could tumble into junk status.
GM shares plummeted $2.15, or 31.1 percent, to close at $4.76 after falling as low as $4.65. That low marked the automaker's lowest trade since March 15, 1950, according to the Center for Research in Security Prices at the University of Chicago. At that time, the Korean War was three months away from beginning, and gasoline cost 27 cents a gallon.
Thursday marked the sixth straight day of losses for GM. The automaker's shares are down 50 percent from their close of $9.45 at the end of last month.
Brett Hoselton, an analyst who follows GM stock for KeyBanc Capital Markets, said a number of factors could be behind Thursday's drop, including the decline in banking stocks.
"Obviously, GM and Ford, they're closely tied to automotive financing," Hoselton said
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